FACTORS AFFECTING PROCUREMENT PERFORMANCE OFSTAR RATED HOTELS IN HOSPITALITY INDUSTRY, MOMBASA COUNTY, KENYA

Abstract

Efficient Procurement is a key driver in overall organizational performance. Despite the fact, research on procurement performance in the hotel industry has received little or no focus especially in the developing economies. This research therefore strived to determine the factors that affect purchasing performance of star rated hotels in Mombasa County, Kenya. Focus was given to supplier development, information technology and staff competency to establish their impact on procurement performance. Stratified random sampling technique with respect to the unit of analysis which is the star rated hotels in Mombasa Countydetermined the size of the population sample where the hotels were first grouped into their relevant stratums: 5 star, 4 star, 3 star, 2 star and 1 star, and their accurate representation in the population identified then 50% picked from each stratum resulting into 26 hotels. Questionnaires were used to collect primary data from the procurement managers as they are well versed with the data required. The data collected was analyzed to determine the mean, standard deviation, minimum and maximum of the various variables. Statistical package for social sciences(SPSS Version 20.0) was used in analyzing the data to find out the relation between the independent and the dependent variables.The relationship between the dependent and the independent variables was determined using a multiple regression analysis where all the three independent variables showed some level of significance at the 95% confidence level. The strength of the relationship between the variables was determined using a Pearson correlation coefficient (r). The independent variables: supplier development, information technology and staff competency had a positive correlation to procurement performance hence an increase in the factors resulted to improved procurement performance of the star rated hotels. Therefore the procurement managers together with other cross sectional managers should focus on activities that improve the factors in question for the best procurement performance and ultimate competitiveness and success of the star rated hotels.